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Anettt [7]
2 years ago
8

Thomas purchased 200 shares of stock A for ​$23 a share and sold them more than a year later for $ 19 per share. Be purchased 60

0 shares of stock B for ​$41 per share and sold them for ​$57 per share after holding them for more than a year. Both of the sales were in the same year. If Thomas is in a 35​% tax​ bracket, what will his capital gains tax be for the​ year
Business
1 answer:
Delicious77 [7]2 years ago
5 0

Answer:

Capital gain tax = $1,540.

Explanation:

As per the data given in the question,

For stocks of A  

Profit = (selling price - purchasing price) × units

= ($19 - $23) × 200

= -$800

For stocks of B  

Profit = ($57-$41) × 600

= $9,600

Total profit = profit for stock A + profit for stock B  

= -$800 + $9,600

= $8,800

Therefore, capital gain for both year = $8,800

Tax rate = 35%

Capital gain tax = Capital gain × Tax rate

= $8,800 × 35%

=$3,080

As share holds for more than a year,

So, Capital gain tax = $3,080 ÷ 2 = $1,540.

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Imagine you are in the process of buying a new car. Give at least two examples of both qualitative and quantitative data that yo
Ilya [14]

Answer: Qualitative data cannot be recorded numerically at the initial stage, but can be later converted into numerical data for statistical purposes.

Quantitative data is conclusive in summary, can be recorded numerically first hand.

Explanation:

Qualitative data cannot be recorded numerically at the initial stage, but can be later converted into numerical data for statistical purposes.

Quantitative data is conclusive in summary, can be recorded numerically first hand.

Qualitative variables examples;

Colour of the car

Driver experience

Quantitative variables:

Size of the car

Horse power of the engine -

3 0
2 years ago
The inventory data for an item for November are: Nov. 1 Inventory 20 units at $19 4 Sale 10 units 10 Purchase 30 units at $20 17
kolezko [41]

Answer:

=  $490

Explanation:

<em>Under the </em><em>First-in-First-Out  </em>( FIFO ) <em>method of inventory valuation,  inventories are valued using the price of the earliest batch in stock until the batch is exhausted when the price of the next oldest batch is used and so on.</em>

Date     sale units       Workings                         Value

              10                    10 × $19                              190

               20        (10 × $19)+( 10 × $20)                  390

The cost o he merchandise = $190 + $390

                                             =  $490

8 0
2 years ago
ABC Corp. has just paid a dividend of $0.26. ABC has an annual required return of 12%.
Elis [28]

Answer:

a. If dividends are annual and expected to be constant, what is the intrinsic value (fair price) of ABC stock?

P₀ = $0.26 / 12% = $2.16667 = $2.17

b. What is ABC's dividend yield?

$0.26 / $2.17 = 12%

c. From now on, assume that the dividend of 0.26 was a quarterly dividend. What is the quarterly discount rate?

12% / 4 = 3%

d. What is the intrinsic value if dividends are constant and quarterly?

P₀ = $0.26 / 3% = $8.66667 = $8.67

e. We now think that dividends will grow by 0.3% from quarter to quarter. The firm just paid the quarterly dividend of 0.26. What is the intrinsic value of ABC stock?

P₀ = ($0.26 x 1.003) / (3% - 0.3%) = $9.6585 = $9.66

f. A different analyst thinks that ABC's dividends will grow by 5% for the next 4 quarters, and then grow by 0.3% thereafter. What is the intrinsic value?

Div₀ = $0.26

Div₁ = $0.273

Div₂ = $0.287

Div₃ = $0.301

Div₄ = $0.316

Div₅ = $0.317

terminal value in 4 quarters = $0.317 / (3% - 0.3%) = $11.74

P₀ = $0.273/1.03 + $0.287/1.03² + $0.301/1.03³ + $0.316/1.03⁴ + $11.74/1.03⁴ = $0.265 + $0.271 + $0.275 + $0.281 + $10.43 = $11.522  

8 0
2 years ago
The most effective form of business organization for raising capital is the a. sole proprietorship. b. syndicate. c. joint ventu
Sergio039 [100]

Answer: option E -Corporation

Explanation:

Corporation is the most effective form of business organization for raising capital

6 0
3 years ago
Which of the following methods does not help reduce marketing risks?
Nitella [24]

Answer: The following methods does not help reduce marketing risks: <u><em>Integrate vertically to insure a market or form a marketing alliance.</em></u>

Integrating a firm vertically and thereby forming a marketing alliance won't reduce the marketing risks for any organization.

<u><em>Therefore, the correct option in this case is (c).</em></u>

7 0
3 years ago
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